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>> we'll see you tomorrow. >> the tax man in trouble. growing calls to investigate irs after the agency, which is supposed to remain neutral, admits to targeting conservative groups right before the 2012 election. organization using t names patriots or tea party in their application for tax exempt status were flagged for further review. the irs now apologizing, but the bigger issue developing. this is the same agency set to enforce the new health care law. someone here says watch out. folks opposing obamacare could be the next target. hi, everyone. i'm brenda buttner. this is "bulls and bears." here they are. gary, tobin, jonas, john, and david. nice to have you. welcome to everybody. toby, you said based on history, anyone who goes against the health care law should be ready for an audit? >> yeah. the history started with kennedy. get back to his enemies. there was audits. nixon is famous for this. it's been a historical per view of the president to go after his or her enemies with audits. by the way, that is about the biggest way you can get to somebody's face and this type
, our tax and treasurers, and pauline marks from the tax and treasurer's office and it is great pleasure and some what sadness and pleasure to honor him for his service and 13 and a half years with the tax and treasurer's office and he has worked very closely with our office and our staff and when we opened the office of small business, provided training orientation, and for our staff, and for business services. and so, i am going to read this, on this monday, may 6th, 2013, the small business commission is honored to recognize richard simon to small businesss in san francisco. he will be retiring from the office of the tax and tres ses you arers after the career of serving businesses of san francisco for 13 and a half years. the success of a small business, assistance center would not have been possible for *f without the support and guidance of mr. simon, he is a great allie and a small business advocate and always goes above and beyond to help small business kliepts and he serves as an example of all employees on how to serve the small businesses and the commission commends as attitud
.9 million. and the majority of the revenues that you can see in blue are for sales tax and that is $88.3 million and this represents $84.4 percent of the entire revenues in red you have the federal grant funding of 10.5 million and represents 9.6 percent and the majority of funding here is for the ybi improvement project and entering into the construction phase and in the green color you have the vehicle registration fees are the program and it is very similar to what we received in the fiscal year 1213. and 4.7 million and this represents 4.3 percent of the revenues for the year. and in the purple you have other revenues of 2.7 million and this represents 2.3 percent. and the other revenues includes, the first loan repayment from tita of approximately 2.6 million and the loan that we have issued back in 2008 and this was for the prelim engineering stage of the project and in light blue you have regional grant and program funding and this is 1.5 million and represents 1.4 percent of the pie chart and this includes our 736,000 of the tsta fundings that we be receiving from the air quali
for paid bonuses at work with your tax dollars. i am dave asman. what a week. we'll go with moshing an and mike and sabringa and rick. >> rick, this is usually steve forbes job but do you believe that the individuals who skewed up deserve bon us. >> i feel the need to talk flat tax. i think the bonus idea is a bad idea particularly as it a ployed to the irs. remember when we have had a situation with private insurance companies and they are bonusing adjustors and paying them to deny claims. i have a similar problem with irs agents paid to collect more money. i tell you the great surprise. >> or just screw up. >> or screw up. you know who favors bonusing the federal -- the heritage foundation. >> you are an agent of the heritage foundation? >> i have been accused of many. from james, the senior economist. we should shift the distribution from base pay to bonus. >> mike, lois learner who was in charge of the tax exemption got a $42,000 bonus or several bonuses adding up to 42,000. show gave on the a bunch of information that was not true. and her predecessor got bonuses and all told $
organization that primarily does social welfare. >> mark: this is to get tax exempt status. >> that's right. what we're seeing karl rove's organization gave less than one tenth of its revenue in a recent year for social welfare and everything else is attacking obama. now, facts may change. we may learn something that we don't know, but so far from the treasury inspectors report, and i read all of his reports, a group of people in cincinnati called the determination unit decided the quickest way to sort through a flood of applications was to look at those that wrote tea party or to hold forums for elections that would tend to suggest maybe you're not in a social welfare organization. none of the republican groups that applied were denied status. there were democratic groups that were denied and there has been at least one that has its status yanked because it was a political organization. >> mark: you're saying at the end of it all, maybe nothing--they went on, those organizations were granted status, they were able to continue to stay politically active then why are we getting such talk, th
, it cannot even appear to be a consideration in determining the tax exemption of an organization. >> greg: that rhetoric not withstan, went on to argue his agents were not on a partisan mission. rather, they faced a growing up in or applications for this tax exempt status and were trying to find ways to handle a heavy work load more efficiently. still, many democrats joined the republican colleagues in going after the irs chief. charlie wrangle calling the problem a cancer. >> this is wrong to abuse the tax system. this screams out for tax reform,s to it not? >> i think it's an area right for redefinition and reform, yes, sir. >> well, regardless of whether democrats or republicans did something like this next outrage should still be there. is that not correct? >> if the outrage as to the -- >> to the abuse. >> yes. greg greg -- >> greg: lawmakers openingly asking he internal revenue service chief if there was anything he was trying to hide. listen to this back and forth between miller and washington republican congressman dave reichert. >> this is the united states congress you're accoun
for approval of the tax status that you are pushing through for the liberals and you call that poor service? i would call it biased unfair targeting of conservative groups. >> kimberly: there is a lot of this going on and specific examples i find interesting. representative kevin brady had a constituent when he was talking about, a party that had tea party affiliation and applied for tax exempt status in july of 2010 and february 2012 she received an answer asking questions. three years to the day that she first filed her application is still pending. take a listen to representative brady. >> she was visited by the f.b.i. domestic terrorism unit for personal returns and business returns were both audited by the irs. she received four f.b.i. inquiries. this is a citizen in a small woman who had never been audited by the irs. is this still america? is this government so drunk on power that it would turn its full force, it's full might to harass and intimidate and threaten an average american who only wants her voice and their voices heard? >> kimberly: doesn't sound like america, sounds like som
is on there to tax him for. and send the drones to fly over his house. and confiscate huckabee's guns and see how he likes it when he can't go hunting anymore. and take his bass dpu tar away. no more music for huck hug and that will make him think again for challenging me. and now i need something for the media to get off of my back. hey, joe, it is the president. i need my vice-president to step up to plate for his country. i need you to do what you do best. go out and say something ridiculous in front of the cameras. let the media focus on. that ♪ tonight on huckabee. as three separate scandals rock the white house, the irs targeting the conservative groups take center stage. is this still america? is the governmento drunk on power it would turn his force and might to harass and intimidate an average american who only wants her voice and their voices heard? >> that average american is katherine. and she jones the governor tonight. plus. my question is not about who is going to resign. my question is who is going to jail? >> but they are not going to jail. >> instead they are promoted and in char
. if you are singling out a group, unless of a sudden we saw huge increases of tax credits for certain types of groups they look at that, this is understandable. maybe. >> who would make that call? there is a well the we don't know. is that something that could be a rogue irs agent, or higher up? by that i'm saying like way richard nixon had an enemy's list, i would call into a lot of things. >> i think have you millions of people very looked at on their taxes at junior levels before this pyramid would begin, my guess someone saw, you know a group that started taking tax credits. i would hope that it stayed at a lower level. neil: do you think there is a bigger credibility issue. maybe think that a lot of president supporters had is not real image it has been? >> i don't put -- i believe that president made a come today equally saying that this cannot be taken on anyway that this gets done. i think he would agree that independent agents have to kind of keep -- >> when head of irs says, more than a few months ago this was not going on either he is a liar or stupid. >> we'll find out one
of tex to pitch his new program to get aricans back to work. the same texas with no income tax, ttle red tape, lower unemployment rate than the national average. forget don't mess with texas. maybe the president should start doing things like texas. ben stein, charles payne, dagen mcdowell, adam. dagen? >> giddy-up! come on. the president -- >> i like ben stein to do just that, you know. very good. >> the white house is taking the nation as a whole down a road toward europe, more regulation, significantly higher taxes, bigger entitlement programs. instead, we should be looking to texas as a mode no personal income tax. wouldn't we love that? but very low tax burden among the states, the six lowest tax burden in the nation. a very friendly regulatory environment, one of the smallest governments based on the number of residents of the state. and they're actively luring businesses into the state from other burdensome states. >> i think he's a pretty clever guy, the president. i think he knew all of the above. that's why he was there and that's why he was more or less trying to use the state
says organizations using words including "tea party" or "patriot" in their applications to gain tax-exempt status were singled out. in some cases, the groups were asked to show their list of donors, which violates irs rules. the white house says the action was inapproriate. in our cover story, federal reserve chairman ben bernanke says the u.s. central bank is on the lookout for signs of excessive risk-taking - in short, reducing the chances of a too-big-to-fail bailout anytime soon. "it's very clear that for our financial stability we eliminate 'too-big-to-fail.' i believe that entirely." one way to do that, ben bernanke told a chicago banking conference, is to watch closely for excessive risk-taking in the first place. another way is to measure not by size, but by amount of capital put up. "rather than say banks can only be such and such big, they should have to put more and better quality capital up. that would make them safer and also reduce their funding advantage." william isaac, chairman of fifth third bank, disagrees. "i think we need to eliminate the disparity ratio between
the mills act which allows for tax credits for owners of historic property to maintenance contracts in the city. it's been used in a very robust ways and counties in the city of california has been somewhat looser here. it was illusory for those small property owners. that became an apparent during the process around this district so i offered legislation working with the san francisco heritage and planning department for the use of the mills act. we have a usable miss act in san francisco and that was important to me because if we are telling residents in the district that they can get potential tax credits that they are in the district, i thought it was important that it should be reality and we have now made that a reality. after we went through this lengthy process with many community meetings with a lot of views expressed pro and con -- and everywhere in between, i requested the planning department conduct a survey of the property owners in the district. you may recall that i temd to have that as a requirement in article 10 and i did not get that part of article 10 passed by th
they are, reforming the tax code, fixing and saving medicare, fixing and saving social security. >> you think all that is out the window now? >> well, i don't think it's out the window, but leadership is about standing up and creating a possibility for something positive to happen. and we're not seeing that and my hope is, you know, the president's probably not connected to any of this directly, but he absolutely is responsible for all of it. and he needs to be on the offensive, leading on the real problems of the country and one of the real problems is how do you reestablish confidence that the government is not so big that they cannot keep from violating your privacy rights, your tax rights, and your personal property rights? the one thing that i'm worried about, this smells an awful lot like chicago style politics. where you don't care what the rules are. you're out to go after your enemies for anything. and i'm not saying they did it. but i certainly don't like the way -- when kathleen sebelius is now hitting up the very people she regulates, it may not be illegal, but it is certain
ten hours of conversation on one aa battery. >>> the issue of the internet sales tax has divided the small business community in a profound way. the marketplace fairness act was passed by the senate. it requires online retailers which make over a million dollars in revenue to collect sales tax from customers in states that have a sales tax where the retailer has no physical presence. that's what's different about this. it now goes to the house. the law was intended to level playing field between local brick-and-mortars and big online companies. but online small businesses oppose it, saying the cost of complying will cost them dearly. kevin hicky is ceo of onlinestores inc. a jonah, we've profiled on this program before, and he is in favor of the legislation. great to see both of you guys. this has been an interesting debate because people on both sides of the aisle -- you know, it's crossed the aisle. and among st. paul business owners, there's a big divide as well. so give me in a sentence or two why you are in favor of it. >> well, we're really just -- want to level the playing
less than the trillion dollars deficit last year. it's down because of higher taxes. a 60 billion check to the government from fannie and freddie. there's a down side for those of us who want the government to get its finances in order, this takes the wind out of the sails of the spending, cutting movement. maybe the deficit news helped stocks, another record close for the dow, 19th this year and same story for the s&p 500, the 14th he record there this year. we're looking at a flat to slightly lower opening today, but that happened yesterday and we still went up 120 by the close. stay tuned. and suddenly, it seems that president obama's second term agenda is unravelling. and the mainstream media have turned on the administration. big government seriously questioned, my, have times have changed. in just ten days. here is the the all-government, all the time president speaking the at ohio state may the 5th. >> unfortunately, you've grown up hearing voices that incessantly worn the government is some separate sinister entity at the root of our problems. you should reject these voices beca
expanded their search to include groups concerned about government spending, debt, taxes, the constitution, the bill of rights, or trying to it, and i quote,, make america a better place to live, end quote. let me repeat that people were targeted for trying to make better a better place to live. despite a two year long investigation by this committee, the irs never told the american people or their representatives about this simple truth. in fact, we were repeatedly told no such targeting was happening. that is being mis -- that isn't being mislead, that's lying. please raise your right hand. do you solemnly sware or affirm that the testimony you are about to give will be the truth, the whole truth, and nothing but the truth so help you god? >> i do. >> i do. >> i have reviewed the inspector general's report and i believe the conclusions are consistent with that i think that what happened here were that foolish mistakes were made by people trying to be more efficient in work load selection. >> why did you mislead congress and the american people on this? >> mr. chairman, did i not mislead
on me" flags waving. a widening internal investigation that has di covered that the irs targeted tax exempt status of non-profit groups that not only had tea party or operator in their name but also ones that voiced concern about government spending debt, and taxes or constitutional education. miller however was the only named interim commissioner last november following the resignation of bush-appointee doug shulman who headed the organization during these alleged practices. >> if you've got the irs operating in anything less than a neutral nonpartisan way then that's outrageous, and it's contrary to our traditions, and people have to be held accountable and it's got to be fixed. >> john: if you thought that benghazi was going to be around for a long time, hold on for irs gate. thank you for staying with us for this interesting day for this administration. michael, let me continue with you at this time. some conservative friends say this scandal is bigger than benghazi watergate and iran contra-combined. what are your thoughts on that. >> it's more easily understandable by members o
ofvilleofcriminal investigations, so he did something today. for groups seeking status tax status, the president condemned them. >> today secretary lew took the first step by accepting requesting and accepting the leader of the irs. it's important to implement new leadership to help us go forward. >> john: whether that will satisfy congressional republicans remains to be seen. earlier today, senate minority leader mitch mcconnell demanded a different sort of action from the president. >> the administration needs to make witnesses available to testify on this and any other incident of targeting the administration's ideological's opponent. >> john: and john boehner has made up his mind whether haws were broken or real crimes committed. >> my question isn't about who is going to resign. my question is who is going to jail over the scandal. >> john: the scandal where no laws were broken. on the so-called scandal front yes, benghazi, they tried to put that to rest yet again by releasing 100 pages of internal e-mails that shows how the talking points of u.n. ambassador susan rice were shaped. rice and
on the irs regarding the standards for approving monitoring tax-exempt organizations, particularly 501(c) groups. any communication from the white house? >> no. but, don't take my word for it. take the word of the independent inspector general who said he found no evidence from outside the irs. >> you believe there are none? >> we're going to work with congress, as the president said, in legitimate oversight, what we're not going to participate in fishing expeditions to distract from real issues at hand. >> when senator portman is asking for documents or e-mails, you're not going to comply with that request? >> we'll look at any request that congress puts forward. and we'll work with them. our hope is that they'll do this in a bipartisan way to help solve the problem. >> but bottom line, no communications as far as you know from the white house to the irs? >> absolutely not. >> at the hearings on friday, the acting director, outgoing acting director of the irs, mr. miller, was asked about the legality of this targeting, the special scrutiny of the conservative groups. here was the questi
. everything i do is guided by a very simple principle. what is in the national interest of britain's tax is it appeared that will make our country's more prosperous that will help our businesses? we will push for this transatlantic trade deal. is it in our interest to reform the union to make it more open or competitive and to improve the place within the european union tax it is achievable. year passed to change. the currency is driving change for that single currency. i believe britain is quite entitled t for and get changes. is it in britain's national interest want to have achieved those changes to consult the british public in a fall on referendum. i believe it is. this is absolutely right. it has strong support around the country. of this is what i am going to do. you ask a question what are the science of russian engagement. i have very good talks on friday. we had a very frank conversation. we have approached this and some extent do approach it in a different way. i have been vocal in supporting the syrian opposition in saying assad has to go. he is not legitimate. i continue to
on that. in the general fund we get about a third of our overall revenues from property taxes. over a billion dollars a year come in through the property taxes. we also have significant revenue sources including the hotel tax, business tax, and sales tax that also contribute to our overall revenues that we have available to spend. it's also important to remember that because of our combined city and county nature, we receive a significant amount of support from both the state government and the federal government. in fact, about one out of every five dollars that san francisco spends comes from the state or federal government. and i think that is important to know, especially when we are in a time where -- in particular this year the federal government is contracting their spending. that has a trickle-down effect and it does impact san francisco's ability to continue certain types of programs. so moving on to the sort of current year situation, the mayor mentioned we just recently undertaken our second five-year financial planning process and have identified more modest, but sti
about in the general fund which is about 3 and a half billion dollars from property taxed and from business taxes we have the sales tax and hotel room tax. about one out $5 comes from the state or federal government. we pay all those taxes when the state government or federal government makes a change it effects us. over the last few years we've taken some good steps to make our budget more sustainable and we have a 5 year outcome. and what i can see here is that over the next 5 years so the the light gray line on the right-hand side that's showing you what our expenditure productions are looking like and the dark gray line on the left is the revenues. so assembly over the next 5 years our expenditures are going to grow. the economy is starting to recover but there's still is a gap between running the city's government and how much money we're going to take in. finally i just wanted to share with you some of the information we have. as i mention balancing the budget is understanding the resources that are available and then thinking about how those reservoirs bit i fit together wit
weekend. >>> golf nor brown says despite a surge in tax revenue he's not planning on spending it all. his revised budget assumes a windfall of $2.8 billion. but revenue next year will be down. in part because the federal moves like the sequester and inspiration of payroll tax cut. still they want to spend $1 billion to implement core standards. >> this is a great move. it puts california in the forefront but it's not going to happen over night. it's going to take a lot of training of the teachers. it's going to take a lot of work throughout the state. it's going to take some money. >> the budget includes $500 million at increased spending on med di call. >>> developing story from overseas. four u.s. soldiers are dead after a u.s. bomb attack. nato says the soldiers were patrolling in a convoy car when they ran over an improvised explosive device. others are wounded but they don't know how many. u.s. troops are scheduled to leave afghanistan by the end of 2014. >>> former nfl running back and cal star chuck has died. six of his records all set in the 70s where the bears remain untouched. h
and healthcare cost should believe saved. finally and excess tax could be [inaudible]. thank you so much. >> thank you, next speaker. >> i [inaudible] magnify the lord. [inaudible] /pw-frb he became president, he said if a baby lives through an abortion just let it die, /tko*epblt feed it, don't clothe it. during the debates about abortion he said i wouldn't want my daughter pun you punished with a little mistake. and we are in really rough shape when the president talks like that, and yet he does talk like that. i came to talk about the big event when kennedy was assassinated, he testified that it was code named the big event. the big event in the name of god was not when an adulterer was murdered by a murderer but the big event was when the lord jesus christ was murdered for our sins. [inaudible] i /spoeblg speak openly to the world [inaudible] i said nothing, why do you ask me, why don't you ask those what i've taught to them. did you say this to yourself or did others [inaudible]. >> thank you very much. >> are there any other members of the public who would like to speak? >>
for how this whole thing should go. >> let's abolish the irs and institute something like a fair tax which will make things much sempimpler and remove this prob and let's repeal obama care. thank you. >> thank you. it's very simple. see? let's get right to our panel. here in new york with me is msnbc contributor joy reid. managing editor of the joy, she's got to figured out. abolish the irs, repeal obama care. everybody gets a tricornered hat. that's where we're going. >> we solved america's problem. at a certain point, you start to look ridiculous. with the right, that's an omnipresent risk. in this case, it's as if alex jones is now the head of the republican party because every conspiracy theory about barack obama as this evil, evil thug are all coming together and they've created this narrative but it's all out of their talk radio base. it's all out of their right wing online base. and they've now converged on congress and they pulled them into the conspiracy theorizing, too. it's brilliant. >> i do love their respect for due process. >> oh, yes. >> because they're commandin
that the american people can have faith that an institution and agency like the irs is enforcing our tax laws in a fair and neutral way across the country. and that's what the president is going about the business of doing. because when problems arise on his watch, he will act decisively to fix them. >> i would like to clarify as a point on the calendar when the president first knew there was any kind of problem of this sort at the irs. >> from news reports on friday, which is when i found out. >> so even though there was an ig report being done, nothing that had happened in any of the investigative stuff going on prior to friday, none of that ever made its way to the president. no awareness. >> that's correct. and what i have said here from the briefing room, lawrence, is that the white house counsel was notified as is routine in washington, as you know from your experience here, that there was an ig review going on that was looking at conduct at the irs, very top line notification. and that was roughly three weeks ago. and that process was coming to a conclusion, which is why the notificati
call, mike duke saying higher come taxes and aller increases in prices were other reasons walmart's earnings came in at $1 a share. >> tax refunds caused customers to put off discretionary purchases. though no one likes to talk about weather, it was a real factor across the united states. >> total sales also light. same store sales, stores open for more than a year, fell an unexpected 12.4%. the first decline in 7 quarters. walmart saying its budget driven clients top concerns remain the economy, along with food, gas and energy prices, and to a lesser degree taxes. still, they're spending steadies and remains steady after a weak start to the first quarter. walmart's forecasting, same store sales will be unchanged up 2/10 of a%. a good sign to joe feldman. >> given the fact that sales trends are doing better right now, they sound like they're getting things in order. there's going to be some expansion issues in the second quarter. they should be able to continue that productivity loop. >> earnings forecast amidst wall street estimates. >> walmart violated the corrupt practices act.
staffer in charge of the tax-exempt organizations at the time the tea party group was targeted is now part of the irs office that handles health care legislation. >>> speaking of that, obama care was under fire again yesterday. the 38th time a vote was taken to try to change the law. 229-195, just two democrats voting with republicans. since being signed into law, the affordable care act remains a divisive issue among americans. just 35% of americans have a favorable opinion of the law. of those who oppose it, 53% believe lawmakers should continue to try to repeal or change it. >>> and while congress has failed to come to terms on legislation in terms of guns and the deficit, immigration reform may not suffer the same fate. the so-called gang of eight's proposal has made it through a third round of senate committee hearings mostly in tact. the committee is considering more than 300 amendments to the bill. meanwhile, in the house, lawmakers reached an agreement in principle on a proposal. the plan is to be more conservative than the senates but will still contain a pathway to citizenship. >
ended up with a focus today on a subject every american can relate to, taxes. the question of whether the white house had anything to do with the irs targeting conservative groups for special scrutiny. we have fox team coverage tonight with all the obama scandals. wendell goler with the story of an irs official's new job coming after more of your money over obamacare. we begin with chief congressional correspondent and the man in the hot seat on capitol hill. good evening. >> good evening. after a week of intense heat on the irs, today the agency did not back down insisting there was not a bias against conservatives. >> i resigned because as the acting commissioner, what happens in the irs, whether i was personally involved or not, stops at my desk. so i should be held accountable for what happens. >> the outgoing acting commissioner explained his upcoming departure days after a report blasted the irs for ineffective management. >> was the irs using inappropriate criteria in its review of organizations applying for tax exempt status? yes. was the irs delaying their applications? yes.
groups, of religious organizations. this is much broader than just tax exempt organizations. we are not hearing that on the other side, not at all. >> greta: i don't know the rules of the hearing. if i were mr. miller and i were were on the hot seat accused of targeting one particular side of the poe let cal spectrum. if i had information that i had done the same thing with the other side i would have said how about this, do you want this information. and would you expect that from the wet necessary today or is that something that you wouldn't expect? >> i think you would expect that. i got to tell you, i didn't get this sense that he was outraged at the end of all of this. that, you know, this was just sort of not that big a deal to him. and i don't think he really fully even yet understood just how much a problem this was in terms of breaking faith with the the american people and really almost going to the level of abuse of certain individuals in terms of the questions asked and the length they had to go to simply to exercise their rights under the law. >> greta: what do you
're not getting tax revenue they need from the gasoline. does this change that math equation? if gas is cheaper because there's more oil, will people start driving more? because there has been this huge trend in the country. we were thinking that demand maked awhile ago. people were buying more recently. people were buying more fuel-efficient cars and they were driving less because it was so expensive. if we have more oil and more gasoline do we start driving more again, does it turn around that trend, what do you think? >> we'll certainly drive more. the market is going to respond to these lower prices but we also have to keep in mind though, part of the argument moving to a better mileage car is from an environmental standpoint. so it is certainly a valid reason. so from a social standpoint i think it will be difficult for us to wean ourselves off the priuses which we've gone so fond of last couple years and start moving back to the chevy suburban. melissa: yeah. >> from that standpoint the demand will be strong but an argument from an environmental standpoint i think we have turned corner on
rewards. they were fast tracked for o their tax status. of course, we should be worried because a new national database is about to be created that will hold sensitive intimate information, our healthcare. the irs will be the enforcer of healthcare so it's reasonable to ask. >> eric: and they will be able to decide how much companies are required to carry in terms of healthcare. who gets fined, how much they get fined, they can literally they may do the same thing with the obamacare and literally drive certain ideologies, certain political groups out of business? >> you perfectly stated the concerns of the american people. i used to work as a federal tax litigation attorney at the treasury department. we only had one client the irs. we had to be extremely careful about sensitive tax information. now, the irs has admitted this is the largest expansion of power and authority that they've had in modern times. they have proved they are incapable of dealing with the power and authority they have today. this is why i believe, eric, we were all in the doldrums after the last election, but no
on organizations with "political sounding names seeking tax-exempt status." >> jon: political sounding names! that could be anybody! political sounding names. that's not right wing. it could be hippies for change or occupy ralph nader. (laughter) i mean, not necessarily just right wing. >> groups with names like "we the people" or "take back the country." >> jon: okay, that's right wing. >> specialists were told to be on the lookout for tea party applications. along with groups whose mission was to educate about the constitution. >> jon: oh, okay. all right. in their defense, there is a good reason why people using the i.r.s. to crack down on political enemies would not want americans educated about the constitution. (laughter) and while the tax-exempt status that all political groups get is kind of bull (bleep), it's bull (bleep) that should at least be granted fairly and equitably, spread around evenly, if you will. so unlike much of the benghazi inquiry, this seems like a genuine scandal. so explanation, please, let's say from the individual who oversees tax-exempt organizations for the i
the tax system. this screams out for tax reform, does it not? >> i think it is an area right for redefinition and reform. yes, sir. >> regardless of whether democrats or republicans did something like this, the outrage should still be there, is that not correct? >> the outrage as to -- >> the abuse. >> yes. >> this section of the law has been abused by government employees. not by all of them but some of them. our job is to find out who they are. and all i want to get from you, mr. miller and you it's your integrity on the line. it is the president's, the administrations, irs employees that work hard and it is the congress that is involved in this. people are losing confidence in our government and i hope that you feel the same sense to find out what caused this, how it could happen and help us to restore the confidence that americans should have in their government. i yield the balance of my time. >> mr. ryan is recognized for five minutes. >> we is have established and you have acknowledged that you were briefed on may 3 that there was improper criteria used for tax exempt
it spends bass you have borrowing and taxes and a whole host of things that follow but that spending is what begins the problem that so many conservatives struggle with. frankly, so many taxpayers struggle with. i think that, you know, as i begin to get up in washington and begin to dig into the numbers as i did back when i was governor and looking at the budget numbers in south carolina that led to the pigs in that case it was more than $100 million unconstitutional deficit. months of deliberation on it and when the deliberation didn't work we finally resorted to something else to capture people's attention and it worked because we ultimately closed off that. what i'm going to do is in essence look under the hood at a whole host of things. i think you got to deal with the big rocks in washington, d.c. certainly entitlements. medicare and medicaid and social security but there is a lot of inefficiency out there in all areas of government that people are with warrant concerned about and i will be focusing there as well. i would also se say this. another part of shrinking the deficit is not ju
to social welfare because they are dedicated to social welfare, they don't have to pay taxes, which makes sense. and here's where the scandal part starts, exactly. what exactly counts as social welfare. how does the irs decide if your group applying for the special nontax paying status qualifies? well, here's the irs's own documentation on this classification. the irs lists as examples of social welfare organizations a group aimed at helping unemployed people over a certain age find work. a group working to build a stadium for a school district, a group dedicated to counseling for people in financial trouble, a group that subsidizes kids' tickets to sporting events to get them interested. a neighborhood beautification group and on and on. you basically get the idea, i think. now, those all sounds like the sorts of groups that should be counted as tax exempt and most people are probably more or less fine with that group not paying taxes. now, there has been a very bright line for a very long time between organizations like those and organizations that were engaged directly in political cam
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